Momentum Slowdown in Nifty Futures

In the last week we had seen aggressive short covering from shorter timeframe sellers followed by lack of momentum post the breakout of 8800 zone. In the last three days again we started making fresh three day consolidation in the range 8800-8860 zone indicating that trend is getting tired and whomever trading this zone is most likely dominated by shorter timeframe buyers and this behavior also resembles that upside is very limited and one should prepared to trade with reversal mindset. Momentum Indicator is marginally up but subdued. This is the phase where the crowd cheers for every small up trends.

Daily Sentiment

Daily Sentiment indicator is holding positive. However Weekly sentimental indicator is negative for the last three weeks. This indicates that price reversal below 8800 or the price consolidating below 8860 could drag the price even lower.

Weekly Sentiment

India VIX

India VIX is currently in the declining phase since mid of june 2016 and currently at 12.9 very close to the all time low indicating that fear is completely eliminated from the markets.

Open Interest

Open interest is now currently maintaining the expiry range 8600-9000. Put writers are currently aggressive at 8500PE and 8600PE, Call writers are aggressive at 9000CE. And the Participation Open Interest indicates that FII’s and Clients piled up their inventories in futures to the extreme.

Related Readings and Observations

Nifty Futures Quick Flip December OverviewNifty futures holding its buy mode for the last 4 trading session with quick flip support coming around 10803-10814 band. The trading focus is positioned on the bullish side with possible […]

Nifty Futures Quick Flip Short Term UpdateDaily Sentiment continues to be in a positive mode for last three trading session. Quick Flip immediate support comes around 10750-1760 band. Current uptrend is almost 1290 minutes old and […]

About Rajandran

Rajandran is a Full time trader and founder of Marketcalls & Co-Founder of Traderscafe, trades mostly using discretionary Trading Concepts like Market Profile, Trading sentimental analysis, building timing models, algorithmic trading models. Instructs professional traders, full time traders & aspiring full time traders. Rajandran attended college in the Chennai where he earned a BE in Electronics and Communications. Rajandran has a broad understanding of trading softwares like Amibroker, Ninjatrader, Esignal, Metastock, Motivewave, Market Analyst(Optuma),Metatrader,Tradingivew,Python and understands individual needs of traders and investors utilizing a wide range of methodologies.

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